Google’s attempt to acquire Israeli cybersecurity company Wiz for $23 billion has ended in rejection, which could significantly affect the tech landscape, particularly regarding Microsoft. Wiz CEO Assaf Rappaport announced the company’s decision to decline Google’s offer, emphasizing a desire to continue focusing on building the company towards achieving $1 billion in annual revenue and eventually going public.
This acquisition could have strengthened Google’s cybersecurity division, especially in light of a recent major outage caused by CrowdStrike, a prominent player in the industry. According to Wedbush analyst Dan Ives, investor apprehension and ongoing antitrust concerns contributed to the breakdown of the deal. Google has been under considerable scrutiny from antitrust regulators and concluded a trial related to a significant case brought by the Department of Justice.
Ives remarked that the inability to finalize this acquisition might have broader implications across the cybersecurity sector. He anticipates that Google will continue to enhance its cybersecurity initiatives despite the missed opportunity with Wiz, a sentiment likely shared by Microsoft.
Ives also suggested that the cybersecurity industry is due for consolidation, predicting that Microsoft may seek to enhance its cybersecurity solutions within the next 12 to 18 months. The company recently faced criticism after a global IT outage linked to a problematic update from CrowdStrike, which affected Microsoft users and disrupted various operations worldwide.
Despite the incident, Ives maintained that CrowdStrike remains a leader in the cybersecurity field, but it indicates that Microsoft may need to strengthen its cybersecurity efforts further, especially with Google’s failed acquisition potentially opening new avenues for growth.